[Federal Register Volume 77, Number 88 (Monday, May 7, 2012)]
[Notices]
[Pages 26738-26739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10954]
[[Page 26738]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-978]
High Pressure Steel Cylinders From the People's Republic of
China: Final Affirmative Countervailing Duty Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of high pressure steel cylinders (steel cylinders) from the People's
Republic of China (the PRC). For information on the estimated subsidy
rates, see the ``Suspension of Liquidation'' section, below.
DATES: Effective Date: May 7, 2012.
FOR FURTHER INFORMATION CONTACT: Christopher Siepmann or Yasmin Nair,
AD/CVD Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
7958 or (202) 482-3813, respectively.
Background
The U.S. producer that filed the petition for this investigation is
Norris Cylinder Co. (Petitioner). The mandatory respondent to this
investigation is Beijing Tianhai Industry Co., Ltd. (BTIC).
Period of Investigation
The period for which we are measuring subsidies, or period of
investigation, is January 1, 2010, through December 31, 2010.
Case History
The following events have occurred since the Preliminary
Determination.\1\
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\1\ See High Pressure Steel Cylinders From the People's Republic
of China: Preliminary Affirmative Countervailing Duty Determination
and Alignment of Final Countervailing Duty Determination With Final
Antidumping Duty Determination, 76 FR 64301 (October 18, 2011)
(``Preliminary Determination'').
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On October 14, 2011, the Government of China (GOC) filed a partial
response to the Department's second supplemental questionnaire and
requested an extension to complete its supplemental questionnaire
response. The Department granted the GOC's request, and on October 18,
2011, the GOC submitted its response to the outstanding questions in
the second supplemental questionnaire. On October 28, 2011, the
Department issued its third supplemental questionnaire to BTIC and the
GOC, and on November 14, 2011, it received responses from both.
On November 18, 2011, interested party Zhejiang Jindun Pressure
Vessel Co., Ltd. (Jindun) filed a request for a hearing. On November
22, 2011, the Department denied Jindun's request because it was
untimely filed, pursuant to section 351.310(c) of the Department's
regulations.
The Department conducted verification of BTIC's and the GOC's
questionnaire responses from December 7 to December 14, 2011, and
issued verification reports for BTIC and the GOC on January 3, and
January 17, 2012, respectively.
The Department issued a post-preliminary analysis memorandum
regarding three programs on March 14, 2012.
BTIC, the GOC, and Jindun submitted case briefs on March 23, 2012,
and Petitioners submitted a rebuttal brief on March 28, 2012.
Scope Comments
In accordance with the preamble to the Department's regulations, we
set aside a period of time in our Initiation Notice for parties to
raise issues regarding product coverage, and encouraged all parties to
submit comments within 20 calendar days of publication of that notice.
See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May
19, 1997), and Initiation Notice, 76 FR at 33239. We did not receive
any comments.
Scope of the Investigation
The merchandise covered by the scope of the investigation is
seamless steel cylinders designed for storage or transport of
compressed or liquefied gas (``high pressure steel cylinders''). High
pressure steel cylinders are fabricated of chrome alloy steel
including, but not limited to, chromium-molybdenum steel or chromium
magnesium steel, and have permanently impressed into the steel, either
before or after importation, the symbol of a U.S. Department of
Transportation, Pipeline and Hazardous Materials Safety Administration
(``DOT'')-approved high pressure steel cylinder manufacturer, as well
as an approved DOT type marking of DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT,
3T, or DOT-E (followed by a specific exemption number) in accordance
with the requirements of sections 178.36 through 178.68 of Title 49 of
the Code of Federal Regulations, or any subsequent amendments thereof.
High pressure steel cylinders covered by these investigations have a
water capacity up to 450 liters, and a gas capacity ranging from 8 to
702 cubic feet, regardless of corresponding service pressure levels and
regardless of physical dimensions, finish or coatings.
Excluded from the scope of the investigation are high pressure
steel cylinders manufactured to UN-ISO-9809-1 and 2 specifications and
permanently impressed with ISO or UN symbols. Also excluded from the
investigation are acetylene cylinders, with or without internal porous
mass, and permanently impressed with 8A or 8AL in accordance with DOT
regulations.
Merchandise covered by the investigation is classified in the
Harmonized Tariff Schedule of the United States (``HTSUS'') under
subheading 7311.00.00.30. Subject merchandise may also enter under
HTSUS subheadings 7311.00.00.60 or 7311.00.00.90. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise under the investigation is
dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Memorandum to Paul Piquado,
Assistant Secretary for Import Administration, entitled ``Issues and
Decision Memorandum for the Final Determination in the Countervailing
Duty Investigation of High Pressure Steel Cylinders from the People's
Republic of China'' (April 30, 2012) (hereafter, ``Decision
Memorandum''), which is hereby adopted by this notice. Attached to this
notice as an Appendix is a list of the issues that parties have raised
and to which we have responded in the Decision Memorandum. Parties can
find a complete discussion of all issues raised in this investigation
and the corresponding recommendations in this public memorandum, which
is on file electronically via IA ACCESS. In addition, a complete
version of the Decision Memorandum is also accessible on the Web at
http://ia.ita.doc.gov/frn/. The paper copy and electronic version of
the Decision Memorandum are identical in content.
Suspension of Liquidation
In accordance with section 703(c)(1)(B)(i)(I) of the Tariff Act of
1930 (the ``Act''), we calculated an individual rate for each producer/
exporter of the subject merchandise individually investigated. Because
only one company
[[Page 26739]]
was investigated, that company's rate also serves as the All Others
rate.
We determine the total net countervailable subsidy rates to be:
------------------------------------------------------------------------
Net
Exporter/Manufacturer subsidy
rate
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Beijing Tianhai Industry Co., Ltd.; Tianjin Tianhai High 15.81
Pressure Container Co., Ltd.; Langfang Tianhai High Pressure
Container Co., Ltd...........................................
All Others.................................................... 15.81
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As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of subject
merchandise from the PRC which were entered or withdrawn from
warehouse, for consumption on or after October 18, 2011, the date of
the publication of the Preliminary Determination in the Federal
Register. In accordance with section 703(d) of the Act, we later issued
instructions to CBP to discontinue the suspension of liquidation for
countervailing duty purposes for subject merchandise entered or
withdrawn from warehouse, on or after February 15, 2012, but to
continue the suspension of liquidation of all entries from October 18,
2011, through February 14, 2012.
We will issue a countervailing duty order and reinstate the
suspension of liquidation under section 706(a) of the Act if the U.S.
International Trade Commission (ITC) issues a final affirmative injury
determination, and will require a cash deposit of estimated
countervailing duties for such entries in the amounts indicated above.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated and all
estimated deposits or securities posted as a result of the suspension
of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an APO, without the written consent of the Assistant Secretary
for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an administrative protective order (APO) of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a violation which is
subject to sanction.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: April 30, 2012.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
Appendix
List of Comments and Issues in the Decision Memorandum
Comment 1 Application of the CVD Law to the People's Republic of
China
Comment 2 Double Counting/Overlapping Remedies
Comment 3 Whether the Department Should Have Selected Jindun as a
Mandatory or Voluntary Respondent
Comment 4 Whether a Certain Producer of Seamless Tube Steel
Partially-Owned by SOEs is a Government Authority
Comment 5 Whether a Certain Producer of Seamless Tube Steel Owned by
Individuals is a Government Authority
Comment 6 Countervailability of Seamless Tube Steel Produced by One
of BTIC's Affiliates
Comment 7 Countervailability of Inputs Purchased from Domestic
Trading Companies
Comment 8 Whether to Limit the Benchmark for Seamless Tube Steel to
Certain Countries or Diameters
Comment 9 Whether to Incorporate VAT and Import Duties into Input
Benchmarks
Comment 10 Application of Adverse Facts Available to the Electricity
Benchmark
Comment 11 Alleged Errors in the Department's Calculations for the
Provision of Electricity for LTAR
[FR Doc. 2012-10954 Filed 5-4-12; 8:45 am]
BILLING CODE 3510-DS-P